The supply of money IS controlled by the central bank. However, in some countries the politicians interfere with the Central Bank.
The Federal Reserve System, a quasi-governmental body, is the central bank that controls the supply of money and/or currency in circulation. The actual production of currencies is by the Department of the Treasury, which operates the US Mints and the Bureau of Engraving and Printing.
Central Bank or any Monetary Authority of that country controls the printing of money.
Monetary policy
The money supply curve is vertical because the central bank has the ability to control the amount of money in circulation by adjusting interest rates and implementing monetary policy. This means that the supply of money is not determined by market forces, but rather by the decisions of the central bank.
The supply of money IS controlled by the central bank. However, in some countries the politicians interfere with the Central Bank.
The Federal Reserve System, a quasi-governmental body, is the central bank that controls the supply of money and/or currency in circulation. The actual production of currencies is by the Department of the Treasury, which operates the US Mints and the Bureau of Engraving and Printing.
Central Bank or any Monetary Authority of that country controls the printing of money.
Monetary policy
Money supply is determined exogenously by the monetary authority usually central bank of a country.
The money supply curve is vertical because the central bank has the ability to control the amount of money in circulation by adjusting interest rates and implementing monetary policy. This means that the supply of money is not determined by market forces, but rather by the decisions of the central bank.
Monetary Policy
A+ answer: monetary policy
A+ answer: monetary policy
It refers to the adjustment of an economy’s money supply by a central bank.
As a credit controller, central bank controls the volume of credit for maintaining monetary stability. It is the leader in the money market.
It refers to the adjustment of an economy’s money supply by a central bank.